Someone forgot to tell plastics machinery companies that the mergers and acquisitions market was slowing down.
Those firms made three deals in the first half of 2023. Batesville, Ind.-based Hillenbrand Inc. continued its transformation by acquiring Schenck Process Group's Food and Performance Materials (FPM) business for $730 million. The deal increases Hillenbrand's scale in the food, plastics and chemicals end markets.
Based in Kansas City, Mo., FPM makes processing equipment and systems for feeding, filtration, baking and material handling at facilities in the U.S., United Kingdom, Thailand and Brazil that employ about 1,300.
About 65 percent of FPM sales are to the food market — almost half of that to pet food — with the rest in chemicals and performance materials.
"While these markets may seem dissimilar, they actually share a common backbone of similar products, technology and processing requirements," Hillenbrand President and CEO Kim Ryan said in a May 24 conference call about the company's fourth acquisition since June 2022.
FPM, once a portfolio company of Blackstone, is expected to generate $540 million in sales in 2023. That would push Hillenbrand sales up to about $3.3 billion with more than 25 percent from food and recycling markets.